Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy gained but underperformed the benchmark, the Russell 2000 Growth Index which rose 7.58%. The broader Russell 2000 Index increased 5.18% during the same period. Holdings in health care and consumer staples—and lack of exposure in materials, utilities, and communication services- contributed to the relative performance of the strategy, while holdings in information technology, consumer discretionary, and industrials detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Small Cap Growth Strategy highlighted stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN), in the first quarter 2024 investor letter. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides web-based solutions for investment data aggregation, reconciliation, accounting, and reporting services. The one-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was 6.07%, and its shares gained 20.22% of their value over the last 52 weeks. On June 10, 2024, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $20.10 per share with a market capitalization of $5.596 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its first quarter 2024 investor letter:
“Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was also a major detractor. The company develops cloud-native software that allows clients to simplify their investment-accounting operations. Although management projected robust revenue growth of about 18% for the 2024 calendar year, analysts had been hoping for even better growth. As a result, the stock sold off. In our experience, Clearwater’s management team tends to underpromise and then overdeliver. As a result, we bought more shares on the stock-price weakness. And we still expect annual revenue growth to exceed 20% for the next several years.”
A wide shot of a large financial data center.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the first quarter which was 26 in the previous quarter. The first quarter revenue of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was $102.7 million, up 21% year-over-year and EBITDA was $32.2 million, up 42.9% year-over-year. While we acknowledge the potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared The RiverPark/Next Century Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
